What to Know About Michigan Case Costs and Attorney Fees

Key Takeaways:

• Common lawyer fee structures include contingency fees, hourly rates, flat fees, and retainer fees.
• Most personal injury lawyers in Michigan work on a contingency fee basis, typically charging up to 331/3% of attorney fees of your settlement. Matz Injury Law only charges a lower rate of 22% to leave more money in the client’s pocket.
• Higher lawyer fees do not guarantee larger settlements.
• Michigan’s professional conduct rules prohibit lawyers from lending money to clients.
• It’s crucial to distinguish between case costs and attorney fees. Clients are responsible for case costs, which are separate from the contingency fee.

When facing legal proceedings, one of the primary concerns is the cost of securing legal representation. Expenses can vary widely depending on several factors, including the nature of your case, the lawyer’s experience, and the length of the legal process. Understanding these costs is crucial for preparing financially for your court appearance. In the case of Michigan personal injury claims, you can expect to be charged 33 ⅓% of your settlement on top of other fees. Our office stands by our 22% fee, allowing you to keep more of your settlement.

What Type of Fees Do Lawyers Charge to Handle a Court Case?

The cost for a lawyer to represent you in court can range significantly. Here are some costs you should consider:

1. Contingency Fees: In most personal injury lawsuits, lawyers work on a contingency fee basis, meaning their payment is a percentage of the court award or settlement. The maximum that a Michigan personal injury lawyer can charge in contingency fees is 33 ⅓% of your settlement. While many law firms charge this much, at Matz Injury Law, we believe in keeping more money in your pocket. That’s why we only charge 22%.
2. Hourly Rates vs. Flat Fees: Lawyers may charge either an hourly fee or a flat fee for their services. Hourly rates can range from $150 to $500 or more, depending on the lawyer’s experience and location. Flat fees are often used for more predictable proceedings, like straightforward civil cases, and can vary from a few hundred to several thousand dollars.
3. Retainer Fees: Many lawyers require a retainer fee upfront, which is an advance payment from which they deduct hourly charges as they accrue. This retainer, which can be a few thousand dollars, serves as a deposit on future services.

It’s important to have a detailed discussion with your lawyer about their billing practices and to obtain a written agreement outlining the expected costs. This transparency helps avoid surprises and helps you prepare financially for the legal journey ahead.

Do You Have to Pay a Lawyer Upfront?

Most personal injury lawyers will offer contingency fee arrangements, meaning they only get paid if you win your case. Lawyers who work on contingency, like personal injury lawyers, do not charge retainers (upfront fees to secure services).

Discuss payment structures during your initial consultation to clarify matters and allow for proper financial planning. Transparent communication with your lawyer about fees will help set realistic expectations and foster a trusting attorney-client relationship.

Does Paying More for a Lawyer Mean a Bigger Settlement?

Generally speaking, attorney ads on TV, radio, and even on the sides of buses tend to be splashy, claiming to land monster-sized settlements for their clients. What they don’t tell you is there is no correlation between large levels of compensation and higher attorney fees.

There is no proven relationship between how big a percentage fee your lawyer takes from your settlement money and how much your case is worth. If there were, every lawyer ad would tell you firms charging higher percentage fees will get you more money.

Lawyers must:

• Adhere to rules of conduct
• Not engage in false, misleading, or deceptive advertising
• Avoid stating they are “better” than other attorneys for doing the same work

What they can do is advertise their 800 numbers, slogans, family values, courtroom battles, and particular settlements for specific clients.

Remember: It’s not just how much your auto case settles for — it’s how much of the settlement you get to keep after your lawyer gets paid.

• Lawyers in Michigan are limited to a maximum of one-third of the net recovery for automobile or motor vehicle collision cases.
• There is no rule against charging a client a lower percentage fee.
• Don’t be intimidated into thinking you have to pay the maximum fee just because “that’s standard” or because “that’s what the rules allow.”

Many Michigan car accident attorneys are good at what they do and get the job done. You should never hear one say they are “better” than another because there is no proof of that (and it’s against ABA regulations). What you should consider when interviewing attorneys is how much of your settlement you’re OK with giving a full-fee law firm.

_{It’s your case. What’s that worth to you?}

What Is The Maximum Lawyer Fee a Michigan Injury Attorney Can Charge?

• 33 1/3% is the maximum settlement fee a lawyer is allowed to charge under Michigan law.
• Not all automobile injury attorneys charge the maximum 1/3 fee from your settlement
• “No Fee Guarantee” is available from any car accident attorney who works on contingency; this is not special. It’s standard.
• Attorney costs and attorney fees are not the same thing. You should always ask what legal expenses will be your responsibility because this will reduce your settlement.
• Attorneys might refer your case to other lawyers who will take a share of the fee you are charged, even if you did not hire them to represent you; referral arrangements are one reason many lawyers charge the maximum 33 1/3% fee.

Can a Lawyer Help Determine How Much My Case is Worth?

When you ask an automobile negligence attorney, “How much is my case worth?” beware of anyone who claims that they can give you a definite answer.

How Much Can a Lawyer Charge for a Case?

Every case is different. Until the facts are assembled and damages determined, it is impossible to know from the start how much a case is worth. Instead of focusing on your case outcome, ask the attorney how much of your settlement they will charge you as a fee.

Does a Fee-Free Guarantee Mean I Don’t Pay Anything if the Lawyer Doesn’t Win?

• If an attorney you hired on contingency cannot recover compensation for you, it is true they won’t get paid.
• Costs and fees are different.
• You are still responsible for legal costs your attorney spent if they do not win your case; your attorney’s services are not fully “free.”
• If your case goes to court and the defense wins at trial, you may be responsible for paying for your opponent’s legal costs.
• Before you start a case, understand any costs you may be responsible for if you win or lose — this can cost thousands or tens of thousands of dollars.
• Lawyers don’t pay any penalties for any lost cases. The client does.

The Difference Between Case Costs and Attorney Contingency Fees

Case costs

Case costs refer to the various expenses that arise while preparing and managing a legal case.

Attorney Fees

Attorney contingency fees are payments to the lawyer that are contingent upon the successful resolution of the case.

What is a Lawyer Contingency Fee?

Just about all personal injury attorneys will take your case on a contingency fee basis. The word “contingent” means “depends upon.” In a legal case, “contingency fee” means “depends upon winning.” If your lawyer gets you money for your case, you pay a percentage fee to the lawyer. If no money is recovered for your case, you pay no fee to the lawyer. You can use a contingency fee agreement in a personal injury case but not in a criminal case or divorce matter.

What are the Case Costs That Lawyers Charge?

To prepare your personal injury case, your lawyer pays for expenses up front and keeps track of them as your case goes along. Items they will spend money on include:

• Ordering the police report and your medical records
• Court filing fees
• Deposition transcripts fees (e.g., paying court reporters)
• Hiring expert witnesses to evaluate accident evidence
• Meeting with doctors to get their perspective and opinions
• Other items necessary to build your case

The defense is also keeping track of how much it is spending to fight you. Additionally, the defense is paying its lawyer by the hour, so the more work that is done on your case, the more the costs are mounting both on your tab and at the opposing lawyer’s office.

Upon conclusion of your case, the lawyer adds up the amount they spent to prepare your case, and this amount is subtracted from your settlement. If you don’t get a settlement, you will still pay for expenses.

How Much Does a Lawyer Get From a Car Accident Settlement in Michigan?

Our clients often ask how much a lawyer can charge for a case. In Michigan, the legal framework specifies that the maximum contingency fee a lawyer can take is 33% (one-third) of the net recovery from the car accident settlement. This 33% cap serves as the upper boundary for personal injury attorney fees.

However, this percentage is not a mandatory charge. Car accident victims have the right to negotiate with their lawyer for a lower fee. By agreeing to a lower contingency fee, you can keep a larger portion of the settlement.

At Matz Injury Law, we believe in maximizing your take-home amount. That’s why we charge 22%. We want you to keep more money with Matz.

What is the Total Cost for a Lawyer to Represent You in Court?

Guaranteeing you no fee if you don’t win doesn’t promise anything special. A percentage of nothing is nothing. However, if you do receive a settlement, there are still case costs to consider that are on top of the contingency fee. This means if your lawyer spent $3,000 to hire experts, take depositions, and obtain medical records, you are responsible for that as well.

Attorneys are permitted by law to collect up to 33 1/3% under MCR 8.121. However, Section D stipulates lawyers can charge lower fees. Most don’t. Let’s look at the difference that our lower contingency fee makes for our clients. The only thing we are changing is the attorney fee, which you could negotiate before signing anything.

Remember, there is no relationship between a higher contingency fee and a higher settlement.

Can a Lawyer Lend Money to a Client During a Case?

We are sometimes asked by clients if we can lend them money that they will pay back to us out of the settlement we are trying to get for them. The Michigan Rules of Professional Conduct (MRPC) is the code that governs legal practice in this state.

• The rules clearly state loans between the lawyer and client are not allowed.
• This rule is to ensure lawyers are not using the promise of money to convince the client to hire the lawyer.
• This rule also assures any advice the client receives from the lawyer is best for the client, not for the sake of the loan the lawyer wants to protect.

The MRPC does allow the lawyer to advance the costs that go into preparing a case, for example, to the court for filing fees or to a doctor for medical reports. That’s different because the client is responsible for repaying those costs whether the case is won or lost, and none of that money is going to the client.

You may have seen television advertisements for companies offering loans to people with cases pending.

• Talk to your lawyer before entering into any loan agreement using your case as collateral.
• These loans are very expensive and can greatly reduce the value of your settlement.
• If you do not win, the amount you owe can be expensive. Talk to a skilled attorney before even considering this type of loan.

Why Michigan Trusts Us for Personal Injury Claims

Matz Injury Law has committed itself to pursuing justice for Michigan’s injured. For decades, our attorneys have represented clients throughout the Upper and Lower Peninsulas, logging hundreds of thousands of miles on the road to meet our clients where they are.

Clients often turn to our law firm because they know they will receive personalized service from a partner. They will speak with their attorney directly and never be passed off to an assistant. Our clients know they’ll get full transparency and consistent communication about their cases.

To date, Matz Injury Law has earned more than $300 million in settlement and awards for our clients. We also stand by our commitment to charging 22%, not the maximum 331/3% allowed by Michigan laws.

Client Testimonials

“Very kind and professional. I highly recommend Matz Injury Law.” — Sharon K.

“Attentive, professional, and cordial. Easy to reach if I had any questions.” — Alicia C.

Let’s Simplify Your Case Costs & Attorney Fees Together

The aftermath of an auto accident or other type of accident can be overwhelming and stressful. You may not know what to do, especially as insurance companies are actively trying to get you to make quick decisions about settlements. You may know you need legal representation, but it can be hard to sort through the complex — and expensive — agreements attorneys try to make before filing your claim.

Matz Injury Law is committed to putting more of your settlement amount in your pocket. Our law office’s fees are lower than most law firms, and we are fully transparent about every aspect of your case. When you work with a Matz, you can trust you’ll have someone in your corner who truly cares about what is best for you and will base our legal advice on your needs.

To learn more about how we can help you in your legal matter, contact Matz Injury Law today. Our phone number is 1-866-22Not33, or you can fill out our online contact form to schedule a free consultation.